Mexico-based Sierra Oil and Gas secured equity commitments of $525 million Friday to develop projects in Mexico’s recently opened energy sector.
Sierra, Mexico’s first independent exploration and production company, plans to participate in exploration, development and production optimization projects in Mexico.
Sierra also said its considering hydrocarbon transportation, storage and processing projects.
New York-based private equity firm Riverstone Holdings and Houston-based private equity firm EnCap Investments have each committed $225 million in funding.
Mexico-based Infraestructura Institucional has committed $75 million.
All three investors have the option to double their commitments once the initial equity has been deployed.
“The opening of Mexico’s energy sector represents a transformational opportunity for the country….At Sierra we have been preparing for this opportunity for several years,” Sierra’s CEO Ivan Sandrea said.